The weekly $600 unemployment benefit is days away from expiring which comes amid the end of a federal eviction moratorium. The events threaten 24 million Americans who have been heavily relying on the financial support to pay their rent. A survey by the US Census Bureau revealed these citizens are unable to pay next month's rent.
Racial disparities
According to USA Today, the majority of those in danger are from Black or Hispanic households. The two groups have received the severe impacts of the coronavirus pandemic.
Despite Congress discussing proposals for a new stimulus package, several experts are concerned that the opportunity to extend the unemployment benefits and eviction extensions have nearly run out.
The Vice President of Housing Finance Policy at the Urban Institute, Alanna McCargo, said the country was about to fall off a cliff as it sees a sharp spike of evictions in the coming month with people not having the finances they need.
The survey by the US Census Bureau showed that in July, approximately 28 percent of Black people there were unable to pay last month's rent and it showed that nearly 46 percent were unsure if they had enough to pay for next month's rent.
A similar trend could be seen with Hispanics as 22 percent of which did not pay rent last month and nearly 46 percent were afraid of not paying for next month.
Experts state that the stark differences put into perspective the affordable housing crisis that has widened since the Great Recession. Individuals who have already been using up 30 to 50 percent of their income on housing costs are being pushed to the edge.
The president of the National Low Income Housing Coalition revealed the United States's housing system had severe racial disparities causing people of color to be more at risk of being evicted.
Personal protection
The director of marketing and education of the American Apartment Owners Association, Alexandra Alvarado, said that landlords should not expect renters to be able to come up with the payments on one day, as reported by CNBC.
Alvarado has advised landlords that they could use a lease guarantee to protect themselves from individuals who were planning on not paying their rents or for damages.
The director noted it was a security deposit alternative which would allow individuals to avoid paying the entirety of the security deposit. It also protects the landlords from thousands of dollars if an incident happens along the way.
A professor of law teaching at Wake Forest University, Emily Benfer, stated that rent itself has continuing effects across the entire community. If rent is not paid, it leads to mortgage not being paid, which goes on to losing payment on taxes, and much more.
The non-payment of one rent could cause the entire community to suffer financially, including school systems and community services provided to residents.
The House of Representatives recently passed the Emergency Housing Protections and Relief Act of 2020. It would provide nearly $100 billion in direct rental assistance which was not included in the previous CARES Act that aimed to provide financial support to millions of Americans.
